Nov 8, 2012

This Week in Business Skills – Preparing for Negotiation

The process of negotiation itself indicates that parties or
persons involved in negotiation are to be flexible. Because there is no scope
of negotiating if either of the persons or parties are rigid and are not
willing to do so. Another important factor in negotiating is the principle of
exchange, both the persons should be willing to exchange for mutual benefit, it
can be services or products.

Both the persons involved should focus on mutual benefit,
instead of looking for a situation where one wins or loses the negotiation. Before
going for negotiation it is very important to assess the situation from the
other person’s point of view. If possible doing a role play will be the best
way to put you into the other person’s shoes. This will help you to asses what
the other persons wants; his limitations, demands, etc. It would also be better
if you gather information about the other person, his requirements; areas where
he can compromise; etc. and then proceed for negotiation.

If you think you can handle the negotiation on your own and
can bring out the positive output, then it’s well and good. Otherwise you can
do all the ground work and can involve a senior person or senior manager to
emphasize the importance you are giving to the deal. This sends a message to
the other person that you are serious about the negotiation. It is equally
important for you to know your limitations in terms of negotiation before going
for it.

You have to have a very clear idea as to where you can compromise
and to what do the rules and regulations or your authority permit you to do so.
It is also important that you introduce the benefits to the other party as per
the needs and the situation, instead of revealing them all at once. If you
proceed with this kind of approach with a step by step plan then you will
improve your skills in negotiation.